1.1 Legal Structures

​In order to establish any type of voluntary organisation you’ll first have to decide on a suitable legal structure for it to adopt. This isn’t whether your organisation will be a charity or regard itself as a social enterprise, but the legal framework as defined in your governing document (please see section 1.7) and to which you must adhere.

​The key decision in selecting a legal structure is whether you wish to be unincorporated or incorporated. In Scotland, 61% of registered charities (July 2018) adopt an unincorporated legal structure which, as a consequence, exposes their charity trustees to potential risks. The table below describes the key differences between unincorporated and incorporated organisations.